Question
North Point Ltds management has and estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June. $ Cash
North Point Ltds management has and estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June.
$
Cash Sales | 53,000 |
Credit Sales | 92,000 |
Wages (gross) | 22,000 |
Rent | 6,000 |
Credit purchases of trading stock | 18,000 |
Cash purchases of trading stock | 8,000 |
Loss on sales of asset | 3,000 |
60% of sales credit sales are collected in the month of sale and 40% in the following month.
Credit sales for May was budgeted for $80,000
90% of credit purchases are paid in the month of purchase and 10% in the following month.
Credit purchases for May was budgeted for $22,000
Wages for May was budgeted for $15,000.
PAYG tax deductions are calculated at 20% of gross wages and paid to ATO in the following month of wages paid.
Assessment tasks
Prepare a cash budget for June. (Note: For simplicity ignore GST in your calculations).
Example Only:
XXXXXX Pty Ltd | |
Cash Budget | |
For the month of XXXX | |
Details | $ |
|
|
Receipts |
|
Cash sales |
|
Credit sales |
|
July 10% x XXXX |
|
August 90% x XXXXX |
|
Subtotal |
|
GST |
|
Total Receipts |
|
|
|
Payments |
|
Cash purchase |
|
Credit purchases |
|
June 20% x XXXXX |
|
July 80% x XXXX |
|
Rent |
|
GST |
|
PAYG deductions |
|
Wages |
|
Total Payments |
|
Increase in cash |
|
Opening balance |
|
Closing Balance |
|
Note: the above suggested template is only an example, the months indicated under the Credit sales and Credit purchases need to be changed.
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